Accounting Troubleshooters

Understanding the difference between Sales and Marketing

Understanding the relationship between marketing and sales is very important in running a business.  Good and effective  marketing cuts the selling process by as much as 80 to 90%.

Marketing includes activities that you do to reach and persuade prospects.  It is about generating leads, creating awareness and leading a prospect or potential client to come knocking at your door or phoning you.  It is the message that prepares the prospect for the sales. It consists of advertising, public relations, brand marketing, viral marketing, and direct mail.

Selling includes activities that you do to close the sale and get a signed agreement or contract. It consists of interpersonal interaction. It can be in the form of telephone conversation, personal one to one meeting, cold call, and networking. The sales process is about engagement with the prospect or customer on a personal level rather than at a distance.

Marketing activities precede sales activities.  Marketing leads to the Sales process, which eventually results to the conversion of a prospect into a customer.  Imagine a funnel, input marketing, process with sales, and the output is a customer.

Marketing is about
1. Understanding your market and their needs – this would include activities such as market research.
2. Brand Marketing – telling your story, the branding and its message.  Activities would include your business cards, your website. your stationery, your store signs, your branding and packaging, maintaining a consistent recognizable image.
3. Advertising – creating awareness, creating a demand. Activities would include advertising in print media, your pricing strategies, product placements.
4. Social Media Marketing – creating a buzz, creating noise about your product through Facebook, Twitter, linkedin, blogging, networking.
5. Promotions – creating an urgency to purchase your product/services.  Activities would include a limited time-offer promotion, coupons with an expiry date.
6. Pricing strategies – such as variable pricing to reach different prospects, markets or demographics.
7. Public Relations.  Activities would include attending event sponsorships, press releases, publicity campaigns.

Selling is about
1.  Following up on a lead or inquiry.
2.  Personal visits – one to one meetings.
3.  Answering inquiries whether by email, telephone or in-person
4.  Price negotiations
5.  Presenting a proposal, a price estimate, a contract.
6.  Closing the sale by signing an agreement.

In short, marketing is about CCDVTP – Creating, Communicating, and Delivering value to your Target market at a Profit.